Question

Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

	Materials		Labor		Overhead
Work in process, May 1	$	24,700	$	39,900	$	194,085
Cost added during May	$	149,915	$	26,600	$	129,390
Equivalent units of production		2,100		2,000		1,900

Required:

Compute the cost per equivalent unit for materials, labor, overhead, and in total. (Round your answers to 2 decimal places.)

	materials	labor	overhead
Cost per equivalent unit

Answer 1

The cost per equivalent unit for materials, labor, overhead, and in total is calculated as follows:-   

  Calculation of cost per equivalent unit (Amounts in $)

Particulars	Materials	Labor	Overhead	Total
Work in process, May 1	24,700	39,900	194,085	258,685
Add: Cost added during May	149,915	26,600	129,390	305,905
Total Cost (A)	174,615	66,500	323,475	564,590
Equivalent units of production (B)	2,100	2,000	1,900
Cost per equivalent unit (A/B)	83.15	33.25	170.25	286.65